Infosys Approves Rs 18,000 Cr Share Buyback, Stock Soars

On September 12, 2025, the shares of Infosys, India’s second-largest IT company, jumped by more than 2 percent in early trading. The sharp rise came after the company’s board approved a massive share buyback program worth Rs 18,000 crore, marking the largest buyback in the company's history.

In the early hours of trading, Infosys shares were priced at Rs 1,539.90 per share, a strong sign that investors reacted positively to the announcement. This move reflects investor confidence in the company and its future prospects.

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What Is the Infosys Share Buyback Program?

A share buyback is a process where a company purchases its own shares from the existing shareholders. This reduces the number of shares in circulation and often increases the value of remaining shares.

Infosys announced that this buyback would not exceed 25 percent of the company’s paid-up capital, representing 2.41 percent of the total shares. The buyback price is set at Rs 1,800 per share, which is more than 19 percent higher than the previous closing price of Rs 1,509.70 per share.

This buyback is significant for Infosys, as it is the first since 2022. Back then, the company had conducted a Rs 9,300 crore buyback. The record date for this new program, which determines the shareholders eligible to participate, has not yet been announced.

Regulatory Relief from the US SEC

Infosys has also stated that it will receive some exemptive relief from the US Securities and Exchange Commission (SEC). This is due to differences between Indian and U.S. laws regarding tender offer buybacks. This relief helps Infosys comply with both Indian and international regulations while executing the buyback.

Financial Strength Supports Buyback

Infosys has a strong financial position. At the end of the financial year 2025, the company had cash and cash equivalents of over Rs 42,000 crore. Its free cash flow exceeded Rs 20,000 crore, giving it enough room to reward shareholders.

The company plans to fund the buyback from its free reserves, which is part of its capital allocation policy. According to this policy, Infosys aims to return 85 percent of free cash flow to shareholders over five years through dividends and share repurchases.

Historical Performance of Infosys Shares

In recent trading trends, Infosys shares gained over 6 percent in the last five days and more than 8 percent in the past month. However, the stock has experienced a decline of nearly 3 percent over the past six months and is down more than 18 percent in 2025 so far.

This buyback program comes as a strong signal to investors that the company is confident about its future growth and financial stability.

Expert Recommendations

Analysts have given positive recommendations on Infosys following the buyback announcement:

• CLSA maintains an 'Outperform' rating on the stock with a target price of Rs 1,861 per share. This implies a potential upside of more than 23 percent from the previous closing price. CLSA believes the buyback will support the stock during the weaker second half of FY26.

• Nomura gave a 'Buy' rating with a target price of Rs 1,880 per share, implying a potential upside of over 24 percent. Nomura expects the company's constant currency revenue to grow by 3.8 percent in FY26.

• Morgan Stanley gave an 'Equal-weight' rating, with a target price of Rs 1,700 per share, offering an upside potential of nearly 13 percent. The firm noted that the buyback size is larger than the initially estimated Rs 10,000–14,000 crore, and sees the buyback as a vote of confidence in the company’s FY26 guidance despite global uncertainties.

Infosys Financial Performance

Infosys has reported strong results for the first quarter of the financial year 2026:

• Net profit rose 8.7 percent year-on-year to Rs 6,921 crore, surpassing analysts’ expectations.

• Revenue grew 7.5 percent year-on-year to Rs 42,279 crore.

The company has revised its revenue growth expectation for FY26 to 1–3 percent in constant currency terms, slightly up from the earlier 0–3 percent range. Infosys also maintained its operating margin guidance at 20–22 percent, showing stability in profitability.

Why Buybacks Are Good for Shareholders

A share buyback can be a win for investors for several reasons:

1. Boosts Share Value: Reducing the number of shares in the market increases the value of remaining shares.

2. Signals Confidence: Companies conducting buybacks show confidence in their financial strength and future growth.

3. Better Returns: Investors can sell their shares back to the company at a premium price.

For Infosys, the buyback at Rs 1,800 per share gives investors an immediate return higher than the market price, making it an attractive option.

The Rs 18,000 crore share buyback by Infosys is its largest ever and a clear sign of financial strength and confidence. The company’s strong cash reserves, steady free cash flow, and consistent growth provide a solid base for such shareholder-friendly measures.

Investors have responded positively, and stock analysts have given optimistic ratings, suggesting that the share price may rise further. With continued revenue growth, maintained operating margins, and strategic buybacks, Infosys is reinforcing its position as a reliable and profitable IT company in India.

The buyback also reflects Infosys’ commitment to rewarding shareholders and maintaining investor confidence, especially during uncertain global economic conditions.

For anyone invested in Infosys or considering buying, this buyback presents an opportunity to gain from immediate returns while the company continues to perform steadily in the IT sector.